What is the platinum spot price?
The platinum spot price is the current market price for immediate delivery of platinum.
It's determined by trading activity on global exchanges including NYMEX/COMEX and the London Platinum and Palladium Market (LPPM).
The price reflects real-time supply and demand dynamics, influenced heavily by industrial consumption and concentrated mining supply.
Why is platinum cheaper than gold?
Platinum currently trades below gold due to reduced automotive demand (shift from diesel to electric vehicles),
excess supply from recycling, and weaker investment demand. Historically, platinum traded at a premium to gold
for decades, but this relationship reversed in 2015. Many analysts view the current discount as a potential
long-term buying opportunity.
What industries use platinum?
Automotive catalytic converters consume approximately 40% of platinum demand, primarily in diesel vehicles.
Chemical and petroleum refining industries use 20% for catalysts. Jewelry represents 25% of demand, especially in Asia.
Electronics, medical devices, and fuel cells account for the remaining 15%. This industrial concentration makes
platinum prices sensitive to economic cycles.
How does platinum compare to other precious metals for investment?
Platinum offers unique investment characteristics: higher volatility than gold, smaller market liquidity,
and stronger correlation to industrial demand. While gold is primarily a monetary metal, platinum behaves
more like a hybrid industrial-precious metal. The current discount to gold and potential hydrogen economy
applications make platinum attractive for contrarian investors.
What affects platinum supply?
South Africa produces 70% of global platinum, with Russia adding 12%, creating significant supply concentration risk.
Mining challenges include deep underground operations (up to 2 miles deep), frequent power outages, labor disputes,
and declining ore grades. Recycling from spent catalytic converters provides 25-30% of supply, helping buffer
primary production disruptions.
How pure is investment-grade platinum?
Investment-grade platinum bullion is typically 99.95% pure (0.9995 fineness), higher than the 99.5% standard
for gold. Popular investment products include one-ounce American Platinum Eagles, Canadian Platinum Maple Leafs,
and various sized bars from accredited refiners. The high purity standard ensures global liquidity and acceptance.
What is the platinum-palladium relationship?
Platinum and palladium are sister metals often found in the same ore deposits and used interchangeably in some
catalytic applications. When palladium prices spike (as in 2019-2021), automakers can substitute platinum,
creating price convergence pressure. This substitution dynamic provides a natural ceiling for extreme price
divergences between the two metals.
What are platinum group metals (PGMs)?
The platinum group metals include platinum, palladium, rhodium, ruthenium, iridium, and osmium. These metals
share similar chemical properties and often occur together in ore deposits. Platinum and palladium dominate
PGM production value, with rhodium commanding extreme premiums for specialized catalytic applications.
Mining companies typically report PGM production as combined ounces.
How do I store physical platinum?
Physical platinum requires similar storage to gold: home safes, bank safety deposit boxes, or allocated vault storage.
Platinum's higher density means bars are smaller than equivalent value gold bars. Unlike silver, platinum doesn't tarnish,
simplifying storage. Consider insured storage for large holdings, and keep purchase documentation for tax purposes.
What is the outlook for platinum demand?
Future platinum demand faces competing forces: declining diesel vehicle production versus growing fuel cell adoption,
potential substitution in catalytic converters versus new industrial applications, and investment demand at historically
attractive valuations. The hydrogen economy represents the largest upside potential, with fuel cells requiring
significantly more platinum than current automotive catalysts.
